Gold price extends gains to USD 1181 despite dollar rebound
New York (Jun 9) Gold prices extended the early morning gains to hit a session high of USD 1181.6/Oz levels, even though the USD index recovered moderate losses to hit a high of 95.48.
Safe haven appeal amid a sell-off in equities
The yellow metal strengthened on its safe haven appeal amid the signs of risk aversion in the major European equity markets. The German Dax index fell more than 1% on reports that an international official termed the latest proposal from Greece as “not sufficient and vague rehash of the previous one.”
The London’s Ftse index also weakened by about 0.3%., although it is the best performing index today among its peers due to strength in the financial stocks. Nevertheless, the red ticks appear to have driven investors to bid the yellow metal higher.
With no first tier data releases due in the US today, the metal is likely to track the sentiment in the European markets and later on the Wall street. The weakness in the European indices has already pushed the S&P futures lower by 0.20%.
Gold Technical Levels
The immediate resistance is located at 1183.78 (hourly 200-MA), above which gains could be extended to 1190.00. On the flip side, a break below 1173.04 (hourly 50-MA) could push the prices lower to 1162.5.